Friday, May 17, 2013

Scott Walker: Moving Wisconsin Backwards

A report by the non-partisan Wisconsin Taxpayers Alliance does an analysis using generally accepted accounting principles, or GAAP, to look at the overall state deficit. Walker cut it from $2.99 billion to $2.21 billion in 2012 and by this summer that is expected to drop to $2.06 billion.

But under the governor’s new budget, that figure is expected to increase to $2.36 billion by 2014 and $2.64 billion by 2015. Meanwhile he wants to greatly increase bonded debt. WisTax noted he is asking to issue an additional $2.1 billion in bonds, equal to 16% of all outstanding state debt.

The bonded indebtedness of the state has also risen steadily since the income tax was indexed. The WisTax report doesn’t go back to 1999 but does show the state debt has risen from $5.8 billion in 2002 to $13.6 billion in 2013, and that will jump to $15.7 billion if Walker’s budget is approved in this regard.